[00:00:00] Speaker A: It's Take Control Tuesday and that means Mansa Musa is on the phone. And Mansa, we're continuing this series because it's so important. I'm getting a lot of feedback inside our social media, but one of the things that we talk about often is when we go to these websites or we're out shopping, you look at something and are you choosing it or are you being steered to that? And that's where we're gonna talk about today.
[00:00:28] Speaker B: Yeah. Just a quick recap. In our why We Buy series, we've been looking at the psychology behind our buying decisions and how we can recognize those influences and make better decisions with our money.
So today let's look at how the choices we are given can steer us towards spending more than we intended.
Here's a simple example.
You go to the movies and popcorn comes in three sizes. Small is $6, medium is 8 50, large is $9.
You look at those prices and you think, for another 50 cents, I might as well get the large.
It might look like a better value.
But here's the question. How much popcorn do you really want?
[00:01:18] Speaker A: Right.
[00:01:19] Speaker B: There's a principle in consumer psychology called the decoy effect. Oh, once again, the decoy effect. And here's how it works. The medium doesn't have to be the option they expect you to choose. Its presence changes how you see the Large.
At $9 by itself, the Large is simply a $9 popcorn.
But put an 850 medium next to it and suddenly the large looks like a bargain. Right.
The medium size becomes a comparison that makes the large easier to justify.
That's the decoy effect.
[00:02:07] Speaker A: Wow.
[00:02:08] Speaker B: Instead of asking how much popcorn do I want?
We start asking which one gives me the most for my money?
Those are two very different buying decisions. And this isn't just about popcorn. You can see it with streaming plans, cell phone services, appliances, even cars.
You're looking at a car for 37,500.
The next trim level is 39,000. And you think, if I'm already spending 37, 500, what's another 1500?
Well, it's $1500 exactly.
Maybe the extra features are worth it.
But don't let $1,500 feel small just because it's sitting next to 37,500.
So here's where you take control. Back when you offered more for just a little more money.
Slow down and decide whether the extra is actually worth the extra cost.
If it is, go ahead.
If it isn't, choose what you need and keep the difference.
Don't be afraid to choose enough.
The larger size may have a lower price per ounce the upgraded car may have more features and for the dollar but if you don't need the extra you didn't save money you spent more. Yeah so the next time you hear yourself saying for just a little more I might as well that's your signal to stop and ask do I need more? What will it cost and is it worth it? Yeah because getting more for your money is isn't always the same as getting the most from your money. An intentional buyer not just a consumer
[00:04:11] Speaker A: that is powerful and after just purchasing a car I understand the mechanism behind people wanting to give you more even if you don't need it. So thank you so much for that and as always you can find all of this on our
[email protected] and you can also like and share this information for someone else and as always Mansa I appreciate you.
[00:04:35] Speaker B: Thank you.
